Monday, October 01, 2007
Microsoft Corporation (NDAQ:MSFT) and Google Inc. (NDAQ:GOOG) have reportedly offered to invest anywhere between $300 million and $500 million for a 5% stake in the social networking giant Facebook. Many investors are carefully watching this deal as it could open the door to many opportunities.

First, there is speculation that the social networking website will use some of the money to build out its own advertising platform that could help boost its somewhat lackluster $150 million per year in revenues. Specifically, the company may use the cash infusion to buy a behavioral advertising company.

Many also insist that Facebook may have an interest in going public. After all, with its own stock it would be able to quickly make acquisitions and ramp up its operations. Obviously, any initial offering in this sector would be a hot IPO that is definitely worth watching closely.

In the end, Facebook will no longer have the time to invent new addons and services for its company. It will likely be forced to hire new engineers or acquire companies with products to fill their void to maintain strong growth. However, it is still uncertain as to whether the company will remain private, pursue a buyout or go public. Combined, these factors make Facebook and other players like MSFT and GOOG stocks worth watching!

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10/1/2007 2:25:12 PM UTC  #    Comments [0]  |  Trackback